The process of making a payment utilizing a checking account maintained at a financial institution, such as, for example, a bank, is well known and used throughout the world. In general, the payer maintains an account at an issuing institution against which funds can be drawn. The payer drafts a check, which indicates, for example, the issuing institution at which the account is maintained, the account number for the payer, the name and address of the payer, the name of the payee, the amount of money to be paid to the payee, the date of authorization and, typically, the payer's authentication information (e.g., signature). The payee presents the check to a depository institution. The depository institution presents the check to a check clearing system (such as the Federal Reserve in the United States), which then handles the movement of the check to the issuing institution and the corresponding movement of funds from the issuing institution to the depository institution. With recent advances in technology, the check clearing process can also be performed electronically.
Generally, the issuing of a check by the payer indicates to the payee that the funds for the check are available at that time. In some situations, however, the payer desires to provide a check to the payee dated some date in the future, also known as postdating, with instructions to the payee that the check should not be presented until such future date. Such situations could include, for example, payments being made based on the expectation of a deposit (such as a paycheck or the like) into the account against which the check is drawn, or payments being made in advance of the due date for the convenience of the payer and/or payee. While many people are under the impression that such postdated checks will not be honored by financial institutions until the date written on the check, this is not the case. Postdating a check may not prevent the payee from presenting the check for payment before the date written on the check, and also may not prevent financial institutions from honoring the check when presented. This is because the date that is written on a check has no function in the check clearing process.
Similarly, in the event that payments are being made electronically, using for example, the Internet, the payer may desire to complete instructions for payment (e.g., providing the bank name, routing number, account number, amount, etc.) at some date earlier than the payer desires the payment to be actually debited from his account. Although in many cases the payer can indicate the date of payment, there is no guarantee that the payee will honor such date, and a request for payment may be presented any time after the payer has provided the information to make payment. Thus, regardless of whether payment is being made by physical check or electronically, situations can arise in which the payer's account is overdrawn and checks or payment authorizations will not be honored because of insufficient funds in the payer's account.
Thus, there exists a need for methods and systems that prevent completion of postdated financial transactions until the specified future date.